Obama would likely sign 3-month debt ceiling extension

Jan. 22, 2013
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President Obama and Vice President Biden / Charles Dharapak, AP

by David Jackson, USA TODAY

by David Jackson, USA TODAY

President Obama would likely sign off on a three-month extension of the debt ceiling but would prefer to see a longer-term deal, his spokesman said Tuesday.

Obama "would not stand in the way" if a House Republican proposal for a three-month extension is approved by Congress and reaches his desk, spokesman Jay Carney said.

The Treasury Department reports that the government is close to breaching the $16.4 trillion debt ceiling, which enables the government to borrow money to pay its bills. Failure to raise the debt ceiling could lead to a government default.

Treasury officials have not set a specific deadline but said the nation will lose borrowing authority in mid-February or early March.

Some Republicans have proposed leveraging the debt ceiling to get more spending cuts from the Obama administration; Obama has said he will not negotiate on the debt ceiling, saying the nation is obligated to pay its bills.

A 2011 tangle nearly led to a government default and contributed to a downgrade in the nation's credit rating.

House leaders proposed a three-month extension at their retreat last week and plan to vote on it Wednesday.

Carney said Obama has always supported a long-term debt extension "without drama or delay." But he added that the three-month proposal could be constructive because it "de-escalates the sense of conflict."

Obama's budget office issued an official Statement of Administration Policy on the House three-month plan.

While it is "a short-term measure and introduces unnecessary complications," the statement said the administration is encouraged that it "lifts the immediate threat of default and indicates that congressional Republicans have backed off an insistence on holding the Nation's economy hostage to extract drastic cuts in Medicare, education, and other programs that middle-class families depend on."

It added: "For these reasons, the Administration would not oppose a short-term solution to the debt limit and looks forward to continuing to work with both the House and the Senate to increase certainty and stability for the economy."